Tax Measures Under Canada’s COVID-19 Economic Response Plan

  • Waiver requests: the processing of applications to CRA for a waiver of the withholding requirement in respect of payments for services rendered in Canada by non-residents, or remuneration paid to a non-resident officer or employee, was temporarily interrupted due to the COVID crisis. Requests not processed within 30 days due to this interruption will not result in an assessment for failure to deduct, withhold or remit in respect of those amounts. Urgent waiver requests may be submitted electronically on a temporary basis. CRA will review on a case-by-case basis situations where the waiver request could not be submitted due to travel restrictions. Both the non-resident and the person paying the amount must otherwise fulfil their Canadian reporting and remitting obligations in respect of the waiver application.
  • Disposition of taxable Canadian property by non-residents: Where a non-resident has submitted a request for a Section 116 Certificate in respect of a disposition of taxable Canadian property, and the certificate has not been issued by the time a purchaser’s remittance is due to CRA’s temporary interruption of processing such requests as a result of the COVID crisis, the purchaser or vendor may request a comfort letter from CRA. Urgent requests for comfort letters may be submitted by email on a temporary basis, or by contacting the CRA’s Individual tax enquiries line at 1-800-959-8281.

The above guidance applied from March 16, 2020, to September 30, 2020. CRA has not extended such guidance beyond September 30, 2020.

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